Pediatrix Medical Group, Sunrise, Fla., said the U.S. attorney's office in Miami is investigating the company's past stock-option-granting practices. Pediatrix said a preliminary review by its audit committee in December 2006 found deficiencies that included the backdating of options and inadequate oversight. Pediatrix said it will cooperate with the investigation, and that its audit committee will complete a final review of past option-granting practices as soon as possible. Many publicly traded companies, including UnitedHealth Group and Caremark Rx, have been caught up in a scandal over the backdating of stock options to increase executives' compensation. Pediatrix, which provides specialty pediatric services to hospitals, also recently paid $25.1 million to settle allegations that it upcoded Medicaid claims for neonatal intensive care. The company agreed to the settlement in September 2006 but denied the allegations. It signed a five-year corporate integrity agreement as part of the deal.
Pediatrix confirms federal probe under way
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